Labour Court Database __________________________________________________________________________________ File Number: CD88150 Case Number: LCR11805 Section / Act: S67 Parties: DAWN MEATS - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Claim, on behalf of approximately 50 workers, for increased wage rates and improved conditions of employment.
Recommendation:
5. The Court having considered the submissions from both parties
recommends as follows:-
(a) Basic Pay: The Court is satisfied that the basic rate of
pay is £133.20 per week and as such is the
established fall-back payment. However in
view of the misunderstanding which has arisen
on this issue the Court recommends that the
Company extend to 31st December, 1987 the
trial period for which £140.20 inclusive of
basic plus bonus was guaranteed for a 5 day
week. From that date, the basic rate will be
the fall-back rate. The Court further
recommends that the terms of the National
Plan come into operation in respect of the
basic rate on 1/1/1988 and that the Company
pay a lead-in payment of £50.
(b) Points System: The Court does not recommend concession of
the Union's claim.
(c) Bonus: The Court notes the Company's statement that
payment of bonus is discretionary and
depends on the position of the Company. The
Court recommends the continuation of the
present system.
The Court notes the Company's agreement to the Union's claim with
regard to copies of warning notices, payment of hospital charges
and death-in-service benefit.
In the present position of the Company the Court does not consider
it feasible for the Company to meet the claims in relation to a
sick-pay scheme and pension scheme.
Division: Ms Owens Mr Heffernan Mr Devine
Text of Document__________________________________________________________________
CD88150 RECOMMENDATION NO. LCR11805
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: DAWN MEATS
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim, on behalf of approximately 50 workers, for increased
wage rates and improved conditions of employment.
BACKGROUND:
2. In September, 1987 the Union lodged a 10 point claim with the
Company for a wage round agreement as follows:-
1. Where stockinette and bagging is required, the Company
will pay the cost of four casuals rather than charging
them to the pool.
2. The Company should introduce 40/60 pension scheme on a
non-contributary basis.
3. The Company should introduce a death-in-service scheme.
4. The Company should introduce a sick pay scheme.
5. Points System: This section should be changed to read
as follows:-
(a) 5-60 mins. - 5 points. Delete 15 mins.+
(b) Accumulating period in all cases will be twelve
weeks
(c) Copies of all written warnings under the points
system should be sent to the shop steward and the
Union office.
6. The Company should pay the £10 hospital charge for any
accidents occurring during work.
7. In the Disciplinary procedure, all written warnings
should be copied to the shop steward and Union office.
8. The basic rate should be increased to £154.00 per week.
9. The Company should introduce one week's bonus at the
summer holidays.
10. The Company should introduce two weeks' bonus at
Christmas.
Local negotiations took place, however, while progress was made on
some aspects of the claim no progress was made on the question of
the basic rate of pay. On 3rd December, 1987 the claim was
referred to the conciliation service of the Labour Court. A
conciliation conference was held on 21st January, 1988 but no
agreement was reached. On 25th February, 1988 the case was
referred to the Court for investigation and recommendation. A
Labour Court hearing was held on 22nd March, 1988 in Waterford.
UNION'S ARGUMENTS:
3. 1. The basic rate is £140.20 and not £133.20 as claimed by
the Company. This basic was introduced as a quaranteed
fall back on weeks where bonus would not be achieved.
The Union understood that on putting in place of a new
agreement that the £140.20 would be reverted to.
2. Experience has shown that the process of
stockinette/bagging, whereby the quarters of beef or
halves are individually covered in mesh, is very slow.
It would be more realistic for the Company to bear the
cost of four casuals when need be.
3. The Union views a pension plan as a fundamental issue to
any agreement. It proposes a 40/60 pension scheme.
4. A pension scheme is an essential ingredient for planning
for retirement. All good employment should strive to put
in place such schemes both from a morale and social point
of view.
5. When talking about the claim for a pension plan it should
be borne in mind that the workers do not have many
benefits which apply in other employments locally. The
Company's contributions to such a scheme would be
chargeable in full against corporation tax with very wide
units to the size of contributions.
6. In Labour Court Recommendation No. 11262 the Court
recommended in favour of a pension plan being put in
place in another company.
7. The cost of the scheme proposed by the Union would only
be a quarter of the cost estimated by the Company when it
rejected the claim at the conciliation conference.
8. As regards the claim for a death-in-service plan the
Company is taking a principled position as opposed to
realistically addressing the issues.
9. The sick-pay scheme which the Union is proposing is not
complex. It is a simple scheme for initial introduction.
10. The present points system covering lates is too harsh.
The Union's proposal is that a late of 5 to 60 minutes
would result in 5 points. The present overall points
system has an accumulating period of 52 weeks with a
dismissal total of 100 points. The Union is proposing
that the accumulating period should be 12 weeks.
11. The Union is willing to forego an increase on the basic
for the period from 1st August, 1987 to 31st December,
1987 if a pension plan and death-in-service plan is put
in place. It would then agree to a wage increase being
applied from 1st January, 1988 until 1st January, 1989
when the terms of the National Plan could be applied.
COMPANY'S ARGUMENTS:
4. 1. In an attempt to encourage a trial period on the headage
system the Company in January, 1987 agreed that a rate of
£140 per week would apply when basic and bonus did not
reach £140 for a 5-day week. At no stage did the Company
regard this or refer to it as a 'fallback'. On the
contrary it was in the nature of a lead-in payment or
short-term inducement to employees to try out the headage
incentive scheme.
2. There is no mention in the comprehensive agreement
concluded on 17th June, 1987 of a basic of £140 or a
'fall-back' of £140. Nor was there any intention in
agreeing that document to import into it any element of a
previous payment structure not specifically mentioned.
3. Last year was a poor year for the industry with a decrease
in turnover, a decrease in the number of heads killed and
substantial losses. The prospects for 1988 and following
are not good due to EEC policy which has lead to a fall in
cattle numbers. Further problems arise from over-capacity
in the industry leading to severe competition on prices.
The weak U.S. dollar has affected exports to the Middle
East (which are traded in dollars) and intervention prices
have been reduced by more than 10%.
4. The basic rate in the Company of £133 is in line with the
rate in competitor companies.
4. 5. In consideration of the poor prospects of the industry the
Company proposed a pay pause from 1st September, 1987 to
1st January, 1988. The Company is still prepared to
implement the terms of the National Plan from 1st January,
1988.
6. The Company's offer on pay represents the maximum cost
increases it can afford. The Company rejects claims which
seek to change the comprehensive agreement. It intends to
continue to uphold the integrity of the agreement.
7. The industry faces a stern challenge in the coming years
in the form of severe competition, reducing prices,
turnover, reducing cattle numbers, pressure on exports.
Cost increases must be carefully controlled.
8. The Company has made whatever concessions were possible
and practical on cost increases and on procedural matters.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows:-
(a) Basic Pay: The Court is satisfied that the basic rate of
pay is £133.20 per week and as such is the
established fall-back payment. However in
view of the misunderstanding which has arisen
on this issue the Court recommends that the
Company extend to 31st December, 1987 the
trial period for which £140.20 inclusive of
basic plus bonus was guaranteed for a 5 day
week. From that date, the basic rate will be
the fall-back rate. The Court further
recommends that the terms of the National
Plan come into operation in respect of the
basic rate on 1/1/1988 and that the Company
pay a lead-in payment of £50.